Our Illinois divorce attorneys fight for your fair share of marital assets.
Divorce is emotionally challenging, and amidst the emotional turmoil, managing finances can quickly become a daunting task. People going through a divorce in Illinois need to be aware of the potential financial pitfalls that can arise during this complex phase because navigating the legal nuances of asset division, debt allocation, and financial transparency is crucial to ensure a fair and equitable outcome for both parties. From hidden assets to misvalued marital property, here are crucial financial errors to avoid when navigating a divorce in Illinois and how a divorce attorney can help.
1. Rushing for a quick resolution
Seeking a swift end to your marriage might seem tempting, but rushing through the divorce process can lead to an unfair division of assets, especially for the more vulnerable spouse. It's crucial to take the time to assess your financial situation accurately and work with legal professionals who can ensure an equitable settlement.
2. Refusing mediation or arbitration
In a mediation or arbitration divorce, a neutral third party facilitates discussions between spouses or renders decisions to reach settlements and avoid litigation. These are viable alternatives to a divorce court battle that, in certain circumstances, should be considered. These processes allow both parties to retain control over outcomes, potentially saving time, expenses, and emotional stress. Opting for mediation or arbitration can also maintain the privacy of family matters.
3. Undervaluing or overvaluing marital property
People getting divorced can make errors in valuing their marital property by not fully considering the current market value of assets, like undervaluing a valuable art collection, which might result in an uneven division of assets. Also, overlooking ongoing maintenance costs associated with assets like houses can lead to unfair financial settlements. Make sure to consider all potential expenses linked to assets.
4. Overlooking the potential for concealed assets
Spouses may attempt to conceal assets using various methods, like trusts or overseas accounts. An experienced divorce attorney understands the different methods and tricks people use to hide money and can help uncover hidden assets.
5. Accepting an unfair amount of debt
Hidden debts, like credit cards or business liabilities, can create unexpected financial burdens. Order and review credit reports to uncover hidden debts and prevent being held responsible for undisclosed financial obligations.
6. Moving out without a plan
Leaving the marital home without considering the potential impact on the property division can have unintended financial consequences. Consult with an attorney to make informed decisions about housing during the divorce process. If a spouse does move out of the home but continues to pay the mortgage, they should thoroughly document transactions.
7. Failing to negotiate retirement benefits
Neglecting equitable negotiation of retirement benefits in divorce can have substantial financial consequences. Retirement assets are divided evenly, irrespective of ownership, emphasizing the need for legal guidance to ensure accurate evaluation and fair distribution.
8. Forgetting to consider the impact of long-term child support
When determining child support, consider future educational and medical expenses along with daily costs. Failing to do so can lead to unforeseen financial strain.
9. Ignoring tax implications
Transferring assets during divorce can trigger capital gains taxes and gift taxes. Consult with an attorney to ensure compliance with tax laws and to minimize liabilities. Additionally, consider the future tax implications of received assets.
10. Accepting a lump sum payment
Accepting a lump sum settlement to be through with a divorce may seem enticing, but it can lead to substantial financial penalties. Unless there is a desperate need for cash immediately, a lump sum is not typically an ex-spouse's best option.
Experienced divorce attorneys help negotiate fair settlements
Managing a divorce independently, especially when complex financial matters are involved, can result in costly mistakes. Seeking legal representation might come at a higher cost, but securing a fair settlement and avoiding unnecessary errors is essential. The divorce lawyers at Courtney Clark Law, P.C. in Belleville, Illinois, have the experience and resources you need to effectively negotiate for the outcome you want. If you are considering a divorce, a lawyer can ensure you're making informed financial decisions and help you understand your full range of legal options.
Remember, seeking professional assistance can save you from unnecessary financial hardship and ensure a smoother transition into your new chapter. Contact the Belleville divorce attorneys at Courtney Clark Law, P.C. to schedule your free consultation today.